RHB Capital (RHB Cap) announced it will be issuing 30.9mil
new RHB Cap shares pursuant to the dividend reinvestment plan (DRP) applied to
the final dividend for FY11.
This is in relation to the final dividend for FY11 which was
declared on 28 February 2012.
The final dividend comprises a gross dividend of 11.82
sen/share less 25% tax (net dividend: 8.87 sen/share) and a single-tier
dividend of 5.59 sen/share.
The issue price for the DRP was set at RM6.52/share and was
computed based on the volume-weighted average market price for the five market
days up to and including 25 April 2012 prior to the price fixing date of
RM7.41, minus the gross dividend per share of 17.41 sen and applying
approximately a 10% discount equivalent to RM0.72.
The new shares represent approximately 63.29% of the total
number of 48.9mil new RHB Cap shares that would have been issued pursuant to
the DRP.
There are no surprises in the DRP take-up or subscription
rate, which is in line with historical trend. The previous tranche of DRP issued (in relation to interim FY11)’s subscription
rate was 63.2% (see Table 2 in following page).
The number of new shares will lead to 1.4% increase in total
number of shares issued.
We maintain our positive stance on RHB Cap. We foresee the
following rerating catalysts for RHB Cap (a) stabilisation in gross impaired
loans; (b) better-than-expected loan loss provision; (c) higher fee income from
its investment bank, which will provide evidence of revenue synergies for its
proposed OSK acquisition.
Source: AmeSecurites
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